Hungry Sean

With an agreed $10.9 bln purchase of Pinnacle, Sean Connolly seals the deal on a takeover of the motley crew of slow-growth grocery goods he has pursued since 2014, when he ran Hillshire. But it’s a high price and ambitious cost cuts don’t cover the premium he’s paying.

Context News

Conagra Brands said on June 27 it would buy Pinnacle Foods for $10.9 billion including debt. It is offering $43.11 in cash and 0.6494 shares of Conagra for every Pinnacle share, a total consideration of roughly $68 per share.

Conagra said that it will achieve $215 million in annual run-rate cost synergies by the end of 2022, after incurring a one-time cost of $355 million.

Activist hedge-fund Jana Partners, which agitated at Whole Foods before Amazon.com bought the grocery chain, said in April it had amassed a 9.1 percent stake in Pinnacle.